diff --git a/docker/nova/nova-base/Dockerfile.j2 b/docker/nova/nova-base/Dockerfile.j2
index 1771181a31..ca1fe10b96 100644
--- a/docker/nova/nova-base/Dockerfile.j2
+++ b/docker/nova/nova-base/Dockerfile.j2
@@ -53,7 +53,8 @@ LABEL maintainer="{{ maintainer }}" name="{{ image_name }}" build-date="{{ build
     {% if base_package_type == 'rpm' %}
 
         {% set nova_base_packages = [
-                'openvswitch'
+                'openvswitch',
+                'python3-openvswitch'
         ] %}
         {% if base_arch == 'x86_64' %}
             {% set nova_base_packages = nova_base_packages + [
@@ -74,7 +75,8 @@ LABEL maintainer="{{ maintainer }}" name="{{ image_name }}" build-date="{{ build
             'iptables',
             'openssh-client',
             'openvswitch-switch',
-            'python3-libvirt'
+            'python3-libvirt',
+            'python3-openvswitch'
         ] %}
         {% if base_arch == 'x86_64' %}
             {% set nova_base_packages = nova_base_packages + [
diff --git a/docker/octavia/octavia-base/Dockerfile.j2 b/docker/octavia/octavia-base/Dockerfile.j2
index 7145de8b0b..42a4dc0119 100644
--- a/docker/octavia/octavia-base/Dockerfile.j2
+++ b/docker/octavia/octavia-base/Dockerfile.j2
@@ -24,6 +24,12 @@ LABEL maintainer="{{ maintainer }}" name="{{ image_name }}" build-date="{{ build
 {{ macros.install_packages(octavia_base_packages | customizable("packages")) }}
 
 {% elif install_type == 'source' %}
+    {% set octavia_base_packages = [
+        'python3-openvswitch'
+    ] %}
+
+{{ macros.install_packages(octavia_base_packages | customizable("packages")) }}
+
 ADD octavia-base-archive /octavia-base-source
 
 {% set octavia_base_pip_packages = [
diff --git a/docker/openstack-base/Dockerfile.j2 b/docker/openstack-base/Dockerfile.j2
index 2e60a15893..afc724214c 100644
--- a/docker/openstack-base/Dockerfile.j2
+++ b/docker/openstack-base/Dockerfile.j2
@@ -317,6 +317,11 @@ ENV DEBIAN_FRONTEND noninteractive
 
 ADD openstack-base-archive /openstack-base-source
 RUN ln -s openstack-base-source/* /requirements \
+{# NOTE(mnasiadka): Remove ovs from upper-constraints.txt because python3-openvswitch
+                    is usually newer than UC entry and older version would get installed
+                    in venv (see https://launchpad.net/bugs/1961874).
+#}
+    && sed -i /^ovs=/d /requirements/upper-constraints.txt \
     && mkdir -p /var/lib/kolla \
     && {{ macros.install_pip(['virtualenv'])}} \
     && virtualenv --system-site-packages /var/lib/kolla/venv
diff --git a/releasenotes/notes/distro-python-ovs-df705d1e59f16cde.yaml b/releasenotes/notes/distro-python-ovs-df705d1e59f16cde.yaml
new file mode 100644
index 0000000000..0d22a0167a
--- /dev/null
+++ b/releasenotes/notes/distro-python-ovs-df705d1e59f16cde.yaml
@@ -0,0 +1,6 @@
+---
+fixes:
+  - |
+    Fixes an issue when older version of Python OpenvSwitch bindings package
+    was used, than the running OpenvSwitch code.
+    `LP#1961874 <https://launchpad.net/bugs/1961874>`__